The Contractors State License Board wants the public to know that starting January 1, 2023, concrete (C-8), HVAC (C-20), asbestos (C-22) and tree maintenance (D-49) contractors ) be required to have workers’ compensation insurance whether or not they have employees.
The new requirement is the result of CSLB-sponsored Senate Bill 216, which Governor Gavin Newsom signed into law on September 30, 2022. The bill also requires that all contractors – with or without employees – will be required to have insurance. against accidents at work by January 1, 2026.
Currently, only C-39 roofing contractors are required to have workers’ compensation insurance, whether or not they have employees. CSLB research confirms that many of the approximately 50-60% of licensed contractors who currently claim an exemption from workers’ compensation insurance use employees.
This issue creates an unfair competitive disadvantage for law-abiding contractors who are subject to higher business costs and puts employees and the public at risk of workplace injury. CSLB hopes to protect the public and level the playing field for law-abiding contractors by requiring more contractors to carry workers’ compensation insurance starting in 2023 and eventually all contractors by 2026.
Consumers can check a contractor’s licensing status and whether a contractor has workers’ compensation insurance by visiting the CSLB website.